website industry in india slow due to a mere 12% cagr in domains

Website Industry In India

There are at present more than 5 million registered digital domains in this country.
Out of these, only around 40% of URL’s are functional as websites, currently.
.com remains the most popular TLD (top level domain) with roughly 56% of market share.
The recent CAGR (Compound Annual Growth Rate) in the particular sector is a mere 12%.
A large portion of local websites are just like cars parked on the side of a road with a running engine but unwilling to move further.

website industry in india slow due to a mere 12% cagr in domains

Website Industry in India

The average national buying power is insufficient.
Under a low per capita income, many users here find website construction unaffordable.
As a result of socialism and populism, politics affects internet sector too, in a detrimental manner here.
The tariffs are lower than before.
But the level of vigilance is now so intense that one is paying most of that one used to save as black money, in tax.
Eradication of black market is important.
However, since wealth concealment is immensely down, one notices only a marginal decrease in income tax rates.
A country whose strength used to be high level of savings is facing a rock-bottom level of savings now.
A scarce savings rate leads to dismal expansion and modernization.
That also hampers the growth in the number and quality of website construction.

1st Positive For The Website Industry In India

Large Percentage of Small Businesses –
We are a country with a substantial portion of undersized enterprises scattered around in each and every city.
Maybe we have the biggest ratio of compact firms and self-employed professionals compared to other nations.
Due to an enormous populace, salaries are meagre, hence job satisfaction levels are low.
The desire for owning a business or consultancy firm is common here.
Hence, the potential of expansion of website construction companies is quite promising.
It is more likely for a self-employed person to own a professional to own a site, as compared to an executive for whom a free blog posting page might suffice.
This factor is truly a favorable one for further improvement in website industry in India.

1st Example of How Politics Affects Internet Field In Our Nation

1. Low Per Capita Income –
We are a country with a humongous population – which is the second most prominent curse on us.
The existence of public sector undertakings is the biggest weakness and the main reason for poverty.

politics affects internet sector and economy because of socialism in india

Politics Affects Internet Service in an Adverse Way in India

Unfortunately, even the present administration is not practicing the indispensable reform – which requires a complete sell-off of PSU’s.
GST, Demonetization etc. even though important, fade in contrast to inevitable effectiveness of Disinvestment.
Countries like USA and China have outperformed as both have privatized their PSU’s in line with capitalism.
Keep restructuring and continue designating honest officials for next 1000 years – But the net result overall, will be same.
Often, they start with new experimental formulas for growth, in the greed of making an eternal name in history books, for themselves.
Moreover, they sometimes come up with innovative rules, with formulas in PPP, in the process of trying to prove a point that they invented a great policy.
They carry out magical experiments in reducing corruption, increasing efficiency, answerability and accountability in PSU’s.
However that magic will never work.
Just let the ITDC management take over the Taj Palace Hotel for two years and then see the result.
Most likely, it will witness a massive drop in occupancy rates as a result of incapable management.
They might slash tariffs for reaching full occupancy levels.
Then the hotel would run at a no-profit-no-loss basis and slowly go bankrupt within a decade.
Then the officials would again find it difficult to reduce taxes, as they would require additional funds to help the same to survive bankruptcy.
Then gradually that property will start running at a very slight profit, after a series of warnings from the authorities.
It goes on forever.
In such a situation the hotel will be a hurdle in generating foreign exchange earnings
It will also contribute towards higher national unemployment due to zero expansion.
It seems the administration thinks that it can reduce retrenchment through public sector jobs.
But, trying to create government jobs is the best way to kill an economy.
Or else at the cost of honest PSU’s, you end up with a 1% GDP growth rate like in most of Western Europe.
A typical example of how politics affects internet field in an unpleasant way.
2. Price Sensitivity Due To An Immature Economy –
Agencies advertise claiming building your company’s website for just Rs. 10000/-, as they know that the consumer is price sensitive.
They are able to produce at such low cost because the kind of they build sites of a poor standard.
One ends up wasting even that small amount of Rs. 10000/-.
Such fraudulent activities by few website construction companies has sent a misleading signal to the public, at large.
Cheap sites are not even worth a penny because the features inside them have extreme limitations.
One of the reasons why some find websites useless is that they don’t want to pay for optimization.
Sites are the easiest mode for lead generation as they work out more efficient than old-fashioned marketing avenues.
Local businessmen spend money on hosting seminars and newspaper and TV advertisements, but find optimization expensive.
They feel surprised when any real professional supplies them his price list for developing an optimized website.
One believes what one wants to believe.
Some would simply study things like smartphone compatibility requirements etc. and start thinking they know as much as any other Mobile Website Developer !
They are the ones who literally build and try to optimize own blogs and web pages for free.
Then after seeing zero result on organic listings after 1 year, start believing that websites are useless.
Whereas lack of knowledge on the subject is the cause.
One often comes across customers obsessed with design.
It is like a take-it or leave-it offer from them.
I don’t care – Give me a well-designed website or else I’m going to some other web developer : A common line one may hear from a prospective client.
One needs to understand that web pages are useful only when they provide quality information, purposeful and optimized content !
Well-designed web pages with marketing slideshows and animations attract visitors – no doubt.
website construction companies cannot give equal priority to design and SEO

Website Construction Companies

Nevertheless, for that one needs an audience first.
How would the user know that you have a beautifully designed website, until and unless he is able to find it online ?
One way to do that is opt for digital advertising.
But, Google or Bing will not put your URL address on page one in organic results just because you have a website with which looks fabulous.
Search engines need informative content with visitor-friendly web pages.
And attractive design, video animations and interactive layouts do not make a website as user-oriented.
So how is it humanly possible for any web development company to give equal priority to the design and optimization aspects ?
However, by the time the prospect reaches back his office, he forgets the lesson.
One piece of advice – There are some website construction companies which have separate design teams.
Therefore, if the look and special effects is such a high priority then we suggest clients getting a virtual tour or 4D walkthrough made for promotion.
You would waste all of your investment if you consider a website like a online marketing catalogue !
Reason being, one will end up showing it only to the visiting customers to ones office.
The function of a website is to bring clients to your office, instead.
And the only way to achieve that is through optimisation.
An audience friendly website with minimal designing, simple navigation and containing useful content is the only way to obtain new buyers.
I. Appealing page titles.
II. Interesting headlines.
III. Appropriate linking.
IV. Relevant keywords
V. Meaningful pictures contribute towards developing quality content inside websites.
If organic online visibility is required, then please do not try to pressure your agency to inject fancy designs in your web pages.
meaningful websites outrank designer websites on google and bing

Meaningful Sites Outrank Designer Websites on Google and Bing


2nd Determinant For Hopes Of Development Of The IT Sphere In India

Big Economy –
Due to massive population, we are the 3rd biggest market in the globe.
A large population does more harm than good : which is another matter.
However, this factor helps in enabling a huge demand of products and services.
Another element for a likely continuation of progress of website industry in India.
Moreover, the number of existing sites does prove the point too.
The future if not bright, is at least better than before because moves like GST, Demonetization etc. are a slight advantage from the long-term perspective.

2nd Reason For Pessimism In Indian Online Promotion Market

Insecurity Due to Muscle Power, Corrupt Police, Outdated Laws and a Communist Constitution –
Under a polluted business atmosphere, websites are not a priority in India.
Work is conducted in a non-professional way, as professionalism requires modernization and investment.
Then, lack of education and the influence of muscle power is a discouraging factor for establishments to upgrade processes.
Another influencing element restricting the growth of website construction companies.
Having the most corrupt police in the world, with Haryana and Punjab being the spoilers, it brings an extreme sense of insecurity in the society.
Then, the outdated laws have made life very difficult to manage here.
It keeps changing every now and then.
This is exactly where the police exploit situations to their advantage, for bribes or else strategize to frame false charges against the innocent.
The more than 50-year-old constitution is flawed, illogical, communist and biased.
Therefore, the higher courts every now and then keep coming up with landmark amendments – which is the encouraging aspect.
However, as the lower courts are over-burdened with pending lawsuits, they cannot afford looking at cases from a standalone point of view.
They end up painting everyone with the same brush and the innocent end up being the victims.
The higher judicature is not that much over-burdened; hence provides justice, in most cases, if not all.
The only blessing in disguise as one ends up getting a fair judgement.
However, the problem is that an innocent is crushed for no reason for years in the lower courts, by the time a case reaches the higher judicature.
Moreover, the mischievous, filing fake cases enjoy the show for a long period, by spending a very little amount on lawyer fee.
This corruption in society, business culture and work environment has led to misery for an average individual.
One saves for emergencies instead of investing in technology.
The masses have no other choice but to think “money” all the time because it is the only resource which can give them protection from the police or other emergencies.
But then even the common man is guilty for being unaware too, to some extent.
The government should focus only on internal and external security and law, instead of adding social welfare in its duties.
The bureaucratic agencies providing subsidies is not helping the the masses but actually making their lives more painful.
A hard daily routine leaves no scope for ambition, enthusiasm or risk-taking measures.
A classic illustration of how politics affects internet business as well as all sectors in a damaging way.

3rd Encouraging Aspect About Indian Website Construction Companies

GST, Aadhaar Card and Demonetization –
Economic reforms like Goods and Sales Tax, Aadhaar Card and Demonetization are slowly reducing the ratio of black money component in transactions.
Hence online payments in banking, shopping, guest houses and travel bookings and advertising are on the rise.
Cost of trading and manufacturing is rising, which is a consequence of an additional tax outflow.
The same is forcing corporates to reduce wasteful expenditure.
Consumers have started realizing that websites are a cheaper and yield better sales and revenues in contrast to traditional marketing mediums.
Businesses are hiring lesser employees and procuring improved and optimized websites for better sales.
Such changes are luring the competitors to have own sites too.
One more determinant for an attainable improvement of website industry in India.

3rd Element For Slow Advancement Of Computer Services In The Nation

Low Bandwidth Penetration –
There are at present around 350 million online users here.
However, the percentage of net-connectivity penetration is muted.
The overall share of cyberspace accessibility is only about 30% in our country.
If one argues that it is low in India because of huge population then why is china in the above 50% broadband penetration bracket ?
Even struggling countries like Iran, Peru, Saudi Arabia, Russia, Chile, Argentina, Venezuela and Algeria have a higher net-accessibility than us.
Shockingly, the leadership again steps in at this point by taking steps to invest in digital infrastructure for small towns.
That curtails the scope of growth as it deprives the villages of quick progress which only the private sector can produce.
Since the rural areas have not progressed, they cannot afford to buy data services.
The villagers remain poor as the administration interferes in a commercial activity i.e. purchasing grains from the villagers.
If they exit the procurement and pricing control on agricultural produce, we will see an inflow of a massive private investment in the same field.
Such moves are not reducing poverty – on the contrary they create more poor in villages.
Another instance of why politics affects internet business in a harmful manner.

4th Facet For Progression Of Website SEO Service Providers In India

Competition, Traffic, Costs and Time Shortage –
Owing to a growing population, competition is also increasing.
Hence, the buyer is getting inquisitive for extra transparent information.
Websites provide that in a far better way as in comparison to the common medium – phone calls and meetings, used for marketing.
Additionally, people are navigating mobile websites for placing orders.
The habit of calling suppliers for buying products and services is slowly vanishing.
The increasing road traffic is forcing buyers to compare products on the web, rather than meeting suppliers and agencies through business lunches.

4th Obstacle for Fast Growth Of The Website Industry In India

Low Bandwidth –
Net connectivity is scarce as the bureaucracy forces the telecom giants to cough up huge sums of money for airwaves.
A classic specimen for why politics affects internet badly.

5th Advantage This Country Carries In Cyberspace Zone

Startups –
New cyberspace ventures have suddenly emerged lately.
The extraordinary success of privately owned groups, selling retail items, cab services, food delivery, movie tickets and travel bookings is surprising.
Such developments are a beneficial for website industry in India, as additional people get used to browsing.

5th Drawback For The Search Engine Optimization Field In The Nation

Low Bandwidth Speed –
We rank at the 90th position globally, in terms of net-connection speed.
Even behind Vietnam, Sri Lanka, Costa Rica, Bhutan and Pakistan.

6th Benefit Available To Website Construction Companies In The Country

Young Population –
We are a nation with a young citizenry, as 65% of us are below the 35-year mark.
This opens up opportunities for web development too, as the young generation is cognizant of the strength of internet marketing.
A reason for optimism on the betterment of website industry in India.

6th Barrier For Information Technology Consultants In Our Country

Politicians and Bureaucratic Bodies like TRAI etc. –
This factor is a major illustration of why politics affects internet in our economy.
The continuous interference of authorities in the corporate world has been major drawback, since independence.
Then, TRAI keeps coming up with fancy directives thrown at the ISP operators.
An organization, funded by the levies paid by the conglomerates, is giving orders to the same business houses.
Corruption or inefficiency are not the only two consequences of PSU’s !
In addition, these institutions have spoilt the local commercial atmosphere, as they waste natural resources and capital.
Then, to satisfy their egos, all bureaucracies keep announcing genius out-of-the-box ideas for promotion of the Information Technology field.
The data service providers do not need new initiatives, programs and support plans from the administration.
In real, what they want is discontinuation of restrictions in commerce.
Relentless involvement of authorities through partnering with governments of other nations and MNC’s has created a havoc on the IT sector.
Again politics affects internet in our country.
In the process of bringing out support schemes, all administrations end up expanding or forming new PSU-like bodies.
This is a serious reason why we are still a deficient and a poor nation.

7th Positive Factor For Website Construction Companies In India

Abundance of Skilled Manpower –
We produce a large number of software engineers and IT related work-force every year.
Regardless of the fact that the real skilled ones migrate to USA – which is fair and that’s how it should be.
Their enterprises come here and make profits and we go there for jobs to make a living.
Fair deal.
Still the ones who stay back, are extremely talented – which is an encouraging sign for expansion of website industry in India.
Of course, such consultants won’t build a website within a Rs. 10000 budget for you.
But then one should regard such marketing tools as investments which bear fruit in proportion to the money spent.

7th Barrier For Indian Search Engine Optimization Professionals

The Attitude of Dealing Within Own Circle –
Some people prefer working for clients within the business group they themselves are a part-of.
Reason being, that since many firms work in a non-serious manner, they do not want to work for new or untapped customers.
Video below – Websites help professionals grow faster and meet unknown customers as compared to modes like networking within own business circle used in traditional marketing methods :


They find it easy to manipulate clients, sweet talk with friends and relatives, as it is easy to do so over a cup of coffee.
An unknown buyer would judge a supplier, based on his merit.
That scrutiny is something that local businesspersons avoid, often.
A website provides online business exposure for entrepreneurs throughout the world.
Chances of gaining fresh untapped buyers are bright.
But that, for some local firms is a disadvantageous situation instead of an opportunity.
The better you are in making the people within your official and personal circle believe, that you are concerned about them, the more you succeed.
Having said that, there are some valid reasons for businesses avoiding dealing with new customers :
1. Difficulties in Payment Recovery –
Problems in recovering payments from fresh buyers and unknown clients is another reason why people find websites as useless in India.
Entrepreneurs are not too keen to find new clients.
Claiming money for goods and services supplied to known buyers is easier as compared to recoveries from newly procured customers through digital marketing.
The legal system takes years and years in cases of cases filed for cheque bouncing.
A classic example of how politics affects internet sector here.
2. Lack of Capital – Due to heavy delays in payment recoveries, most businesses are on the backfoot all the time.
One has no other choice but to pay defensive by going slow on expansion by exploring new avenues for sale.
Because of reckless spending exercises, the fiscal deficit is always high, resulting in exorbitant borrowing rates.
Hence, one needs to think ten times before considering the option of a bank overdraft or a business loan.
Then, the big firms are, always working at full capacity and the room for further expansion is always a second priority.
Finally, the small time entrepreneur is already worked up, 24X7.
Due to a difficult business environment, he cannot even imagine expanding.
Owing to heavy involvement of PSU work culture, bureaucracy and regulations on corporate activities – Networking, contact building and pull has spread in the private sector too.
Yes, it’s true – Politics Affects Internet in our nation.
The private enterprises are the ones which are efficient because there is too much at stake for the owner.
One invests own money and sweat and blood in his venture.
A businessman is the one who works night and day under tense conditions.
Unlike a bureaucrat, who plays around with the taxpayers hard earned income and the maximum possible success is not a necessity for him.
There is no answerability, lack of accountability and zero self-interest.
He gets rewarded by the administration even if performing at a slightly above average level.
To conclude : One may say that the intent of all governments since 1991 has been good – broadly speaking.
But none apart from the Vajpayee Cabinet, aggressively touched upon the indispensable issue of privatization !
If implemented, the ultimate is possible, which will enable real growth of commercial activities in our nation.
The government’s interference through pressuring tactics on large corporates to somehow try and reduce the gap between conglomerates and middle level enterprises by expanding PSU’s, is laughable.
On the contrary, that kind of economics, further harms the entire system, instead of healing the small businesses.
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One Response

  1. sid September 19, 2017

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